PFS POWER used the PFS National Conference in Manchester to publish new guidance aimed at helping firms focus on consumer outcomes in financial planning.
The guidance identifies five key consumer outcomes that advisers should pursue: ‘clarity, connection, choice, control and confidence’.
It outlined the ‘human skills’ needed to assist clients in making sound decisions about their finances.
Duncan Parkes, co-architect of POWER Planning, said: “Outcome based financial planning is an approach that puts the client at the heart of everything, but with a subtle difference.
“As well as being about the client, it focuses on the outcomes (feelings) that financial planning can bring to a client.
“Anyone can say that the client sits at the heart of what they do, but only those adopting a specific style of financial advice can say that they are working to achieve specific outcomes for their clients.”
Parkes added: “PFS POWER recommends goal setting with clients to provide ‘clarity’, while understanding their resources establishes a realistic ‘connection’ with their current circumstances and future plans.
“Once established, ‘choice’ can be presented, improving chances of success and giving the consumer a feeling of ‘control’.
“Regularly revisiting the plan is emphasised as vital in the financial planning process.
“It is the long-term relationship that we build with our clients that gives them the ‘confidence’ that they are on track to achieve their goals.”
Carrie Bendall, head of PFS POWER content, said: “Since I discovered the world of personal financial planning in 2008, I’ve had the privilege to meet hundreds of financial planners and to have hundreds of conversations with their clients.
“Conversations where clients have the freedom to think about what personal financial planning means to them. Many repeated the same words: clarity, connection, choice, control, confidence.”
